Maximum Earnings checking account -- UPDATED FOR 2010

Recent news reports have trumpeted how savers are getting their clocks cleaned as CD and online savings rates continue to drop. So many people use the giant monster mega-banks for the sake of convenience and they keep getting larger all the time. But small community banks and credit unions have grown in number as people seek banking with a personal touch.

Some smaller banks and credit unions now offer a new oddball checking account that pays up to 4 percent. They can afford to pay out such a handsome return because the account is, in essence, subsidized by merchants.

Usually called the Maximum Earnings (ME) account, this account can take deposits up to $25,000. Stipulations include that you must do direct deposit and at least 10 or 12 signature-based debit transactions each month.

That's where the retailers come in. Merchants pay exorbitant fees whenever you run a debit transaction as a credit card and sign for it. So the bank, in essence, rips off the merchant and then passes along a part of the bounty to you. This thing could go on for a while until retailers can break the Visa and MasterCard cartel.